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4 Pillars of Being a Landlord

Easton Garcia our Director Redemptive Real Estate and Community Innovation wrote this article for your benefit....enjoy!

The 4 Pillars of being a Landlord

Embarking on the journey of income property investing can be perceived as a complex endeavor, fraught with maintenance challenges, legal intricacies, and tenant concerns. We want to dispel the myth surrounding being a landlord– the notion that it's an arduous road paved with insurmountable issues. In fact, the art of successful property ownership revolves around four essential pillars: Buy Well, Manage Well, Prepare Well, and Be Well. These pillars that can transform your property ownership experience from one of struggle to one of confidence, all while nurturing a flourishing environment for you and the broader community impacted by your investment. 

Buy Well: Laying the Foundation

The “right” property is akin to setting the cornerstone of a large structure. However, purchasing the right property is more than a mere transaction. Rigorous research is the key to uncovering the ideal property; location, vintage, underlying conditions will all inform the outcome. 

In addition to physical characteristics, there are a whole host of economic and community driven factors that can influence the path toward health or decline. We have written about these in <investing in a village> and touch on some of these factors. 

The approach that evaluates physical characteristics, economic indicators and finally financial feasibility will set the stage for a successful property ownership journey, creating a solid base to build upon.

Manage Well: Orchestrating Smooth Operations

Management stands as the backbone of income generating properties. This involves assembling the right team (legal, insurance,property management, maintenance, financial, etc…), constructing streamlined processes, and establishing clear policies. Collaboration is key—fostering mutual understanding among the team and establishing the ultimate goal/s will set you up for health.  A well-managed property management team foresees concerns, minimizes conflicts, addresses issues and will greatly contribute to creating an environment of harmony for all involved parties.

Prepare Well: Equipping Yourself for the Journey

Acknowledging that challenges will arise is a vital aspect of property ownership. The preparation lies in having a reliable team, systems, vendors, and a well-defined decision-making process in place. This readiness empowers you to address challenges with confidence. 

Adequate preparation also involves maintaining the proper cash reserves to navigate uncertainties without strain.  Prepare financially for both regular maintenance issues and for unplanned emergencies.  

Be Well: Aim at Thriving

Being an investment property owner entails more than just owning a physical asset—it's about nurturing overall well-being. This encompasses the welfare of your residents, your team, yourself, and the broader community.  In health, your property and your investment pays dividends beyond those that are simply monetary.  Your property is integrated into a community and has the potential to be a community asset and contributor.  Your property has the most potential to thrive when you and those that are in your sphere, are thriving.

Navigating as a Confident Steward

Property ownership is a lot like being a steward. You are entrusted to care for the asset and the lives that are impacted by its health. By embracing these four pillars—buying well, managing well, preparing well, and being well—you transform from a mere property owner to a confident steward. Success isn't solely about weathering challenges; it's about cultivating thriving lives through your investment. ___________________________________________________

Make the wise decision,

 

Jay Kennedy

On behalf of the Sovereign Sage Team

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